DEPARTMENTALIZATION

WHAT IS
DEPARTMENTALIZATION ?
Departmentalization involves dividing
an organization into different

departments, which perform tasks

according to the departments'
specializations in the organization.
Departmentalization as a means of
structuring an organization can be
found in both public and private
organizations.
TYPES OF DEPARTMENTALIZATION
Functional departmentalization
Process departmentalization
Product departmentalization
Geographic departmentalization
Customer departmentalization
Combined departmentallization
Time departmentalization
Number departmentalization
 FUNDAMENTAL
DEPARTMENTALIZATION
Manager Engneering

Manager Accounting
PLANT
MANAGER
Manager Manufacturing

Manager HR
 + -
Efficiencies from putting Poor communication
together similar specialities
across functional areas.
and people with common
skills,knowledge and
Limited view of
orientation.
Coordination within functional organizational goals
area.
In-depth specialization.

ANAMIKA JOY
In process departmentalization, departments are
separated based on their role in a production
process.
Best example of process departmentalization can
be seen in a textile mill where we may have a
spinning department, weaving department, dyeing
department, printing department, etc. Here, inside
a textile mill, all activities, which are directly or
indirectly related with spinning are grouped
together to make a spinning department.

EXAMPLE:
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In process There is a high chance of
departmentalization,there is a conflict in process
proper division of work.so,it is an departmentalization.
effective form of It is difficult to maintain effective
departmentalization. coordination.
Top level management is oriental
It is hard to maintain unity of
towards the basal result.sp,there is
command.
proper operation.
There is clear authority and
responsibility in each department.
ANANDHU
 PRODUCT
DEPARTMENTALIZATION

Product departmentalization is an organizational strategy

that divides employees into teams to work on all aspects
of a particular project or product line. Every product line
has an individual department or team, and department
members all specialize in different aspects of product
development and distribution.
EXAMPLE:
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Not suitable for smaller
It ensures better customer
organisation.
service
Due to low demand, resources
Unprofitable products may be
may not be fully utilized.
easily determined
Top level management has to
Makes control effective
face difficulty to control
It ensures quality products.
production division.
Team work and coordination.
There is high chance of conflict
between different departments.

SANJAY
 GEOGRAPHIC
DEPARTMENTALIZATION
Grouping activities on the basis of
territory. If an organization's customers are
geographically dispersed, it can group jobs
based on geography. ... Because each
process requires different skills, process
departmentalization allows homogeneous
activities to be grouped together.
EXAMPLE:
 + -
Better efficiency for division. ... Communication problem between head
Easier to coordinate. ... office and regional office due to lack of

Improved focus. ... means of communication at some

location
Leadership opportunities. ...
Coordination between various divisions
Ability to track profits. ..
may become difficult.
Distance between policy framers and
executors
It leads to duplication of activities which
may cost higher.

NAVEEN
Customer departmentalization is where the
organization's activities are ready to
respond to and interact with specific
customers or customer groups. This
organizational form is used when great
emphasis is placed on effectively serving
different customer types.
EXAMPLE:
 + -
Encourages concentration on
customer needs.
Gives customers feeling that they
have an understanding supplier
(banker).
Develops expertness in the
customer area.
Saves customers' time.
SHAMIL
Decision making becomes
slower and more bureaucratic.
De-emphasis of overall
company objectives.
Accountability and
performance become
increasingly difficult to
monitor.
Overspecializes and narrows
view¬points of key personnel.
 COMBINED
DEPARTMENTALIZATION

Combined base departmentation is also called as

composite departmentation or mixed
departmentation. This type of departmentation
provide the benefits of both functional and product
structures. But the conflicts between different
departments and division may increase.
EXAMPLE:
 + -
Collaboration between different There may be under-utilization of
departments. facilities and manpower in some
Combines project and functional departments, particularly during the

management structures. period of low demand.

Allows interdepartmental It may lead to duplication of activities

and heavy overheads,
communication.
The managers of customer
Employees can develop new
departments may put pressures for
skills.
special benefits and facilities.
Team members and managers
keep their functional roles.

ELDHOSE
 In time departmentalization, departments are
separated based on the division of their working time
or job shifts.
For an example, departments can be made based on
night shift, morning or regular shift, evening shift,
etc.
This method of departmentalization is generally seen
among those organizations who render 24-hours
emergency and/or essential public services for 365
days a year. Examples of such organizations include;
hospitals, hotels, airports, police, security, and so on.

EXAMPLE:
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It creates employee satisfaction.
It helps to increase the
production capacity within the
limited resources.
Enables customer satisfaction.
Flexible
In departmentalization by the
time,there may be coordination
between various departments
becoms challenging.
High chances of shifting the
responsibility of one department to
other departments.
The technical problem in one shift
may create problems for the entire
shift.

HASHIM
SUHAIL
NUMBER DEPARTMENTALIZATION
In number departmentalization, separate departments are made after analysing and
judging the maximum limit up to which number of persons can be managed or
educated or supervised or taken care of. This method of departmentalization is
generally used in schools and colleges for making division of classes.
For example, students having numbers from 1 to 50 are made to sit in A division of
their class and so on. Military forces also use this method.

EXAMPLE:
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Time based departmentation This is costly method of

follows division of work. departmentation.

Entire shift may face problem due to
Time based departmentation
the problem of one shift.
make maximum utilization of
There is very difficult to maintain
resources.
effective coordination and proper
It follows the principle of
communication among different shift.
specialization.
Time based departmentation faces
There is no work burden for
the problem of conflict between
managers and employees.
managers and employees of different
shifts.
NIDHIN